What You Need to Know about Re-mortgages

If you have a current mortgage on your home but have noticed more attractive rates, you may want to decrease your costs by finding a re-mortgage on your home that will add some additional funds that you can use for medical, educational, or other reasons that will improve your family’s quality of life. If you are just beginning to research re-mortgages, there is a plethora of information that you should understand before you attempt to get the deal that is right for you. Let’s take a look at exactly what you need to know and ask about before you begin the re-mortgage process.

1. One of the first questions that you should ask is why you want to re-mortgage your home and will it be beneficial to you. This step can save you a great deal of money over the life of your loan which will add discretionary money to your budget. Be sure to ask a team of mortgage professionals like those at flagstone.co.uk if this is a path that you should pursue.
2. You should also determine what documents will be required for re-mortgage and begin to gather them in an organised folder to present to a lender. Also research the types of questions that you should ask your current mortgage provider along with a list to present to the new lender as well.
3. Another area that you should become familiar with is the type of re-mortgage that you should select. Ask about fixed and variable rates and which one is best for your needs. You should also ask about the portability of your current mortgage if you are moving to a new home.
4. Knowing the amount of fees associated with a re-mortgage can be the catalyst that moves you to make the right decision. If your fees are not going to be able to be recovered in the timeframe that you want for your re-mortgage, you may opt to reconsider this plan of action.
5. Will you be able to qualify for an attractive rate that appeals to you? This must be determined before you take any action to re-mortgage your home; your qualification will depend on your credit score, the debt to income ratio that you have, and the details of your current financial status.
6. Keep in mind that once your application has been submitted, a surveyor will come to determine how much your home is worth. Even though your estate agent may have valued your home at a certain level, understand that a surveyor may value your property lower.
7. Another fact that you should know is that a re-mortgage process may take up to eight weeks to complete from start to finish. Remember that this is just a guideline which your lender may outperform.

If you are considering a re-mortgage for your home, be sure to ask plenty of questions so that you can determine if you will be saving enough money to make the time and effort that is required worthwhile.